Date |
March 2013 |
Vol. No. |
Vol. 23 No. 1 |
DOI |
|
Page |
21~43 |
Title |
Examining the Effect of Online Switching Cost on Customers¡¯ Willingness to Pay More |
Author |
Hee-Woong Kim, Sumeet Gupta, So-Hyun Lee |
Keyword |
IS Management, Switching Cost, Online Consumer Behavior, Willingness to Pay More, Satisfaction, Relative Attractiveness |
Abstract |
Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers?ï¿퐇ock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer?ï¿퐏 willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers??willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed. |